The State Bank of Pakistan (SBP) has set a government borrowing target of Rs5.75 trillion through the auction of Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs) for the October-December 2026 quarter. According to auction calendars released by the central bank, the government plans to raise Rs4.7 trillion through Treasury bills and another Rs1.05 trillion through fixed-rate Pakistan Investment Bonds during the three-month period. The schedule outlines the planned issuance of short-term government securities and longer-term bonds to meet the borrowing target, while providing details of auction dates, settlement arrangements, maturities and the distribution of funds across different tenors. No floating-rate PIB auctions have been scheduled for the quarter.
The MTB programme will account for the larger share of the planned borrowing, with the SBP scheduling seven auctions between the end of September and December 2026. The calendar begins with an auction dated September 30, carrying a target of Rs700 billion and a settlement date of October 1. Two further auctions are scheduled for October 14 and October 28, with respective targets of Rs550 billion and Rs1.05 trillion. For November, the central bank has set auction dates of November 11 and November 25, targeting Rs400 billion and Rs600 billion, respectively. The final two auctions are planned for December 9 and December 23, with targets of Rs600 billion and Rs800 billion. These offerings will form the core of the government’s planned short-term securities issuance during the quarter.
The scheduled MTB auctions come against the backdrop of substantial maturities during the same period. According to the calendar, approximately Rs5.649 trillion worth of Treasury bills are due to mature, including Rs1.455 trillion held by provincial governments. Provincial governments are also expected to invest Rs300 billion through the scheduled auctions. The relationship between maturing securities and new issuance is an important part of the government’s borrowing schedule, as funds raised through fresh auctions can help manage upcoming repayment obligations and maintain the financing cycle for government securities. The auction targets, however, represent planned issuance amounts and do not necessarily indicate the final amount accepted in each auction. Actual borrowing will depend on the auction results and the bids accepted by the authorities.
The central bank has also outlined the distribution of the Rs4.7 trillion MTB target across four tenors: one-month, three-month, six-month and 12-month Treasury bills. The planned allocation includes Rs1 trillion through one-month bills, Rs1.3 trillion through three-month bills, Rs1.2 trillion through six-month bills and Rs1.2 trillion through 12-month bills. This distribution provides a mix of shorter and longer maturities within the Treasury bill programme. Investors participating in the auctions will be able to assess the available securities according to their maturity periods, while the government will use the issuance calendar to organise its planned financing across the quarter. The published maturity schedule identifies the respective redemption dates for each tenor, extending from October 2026 into December 2027.
Under the settlement schedule, the first MTB offering on October 1 will include targets of Rs100 billion for one-month bills, Rs200 billion for three-month bills, Rs200 billion for six-month bills and Rs200 billion for 12-month bills. The October 15 settlement is allocated Rs50 billion, Rs200 billion, Rs150 billion and Rs150 billion across the same tenors, respectively. For October 29, the target rises to Rs1.05 trillion, divided into Rs250 billion for one-month bills, Rs300 billion for three-month bills and Rs250 billion each for six-month and 12-month bills. The November 12 settlement carries a total target of Rs400 billion, with Rs100 billion allocated to each tenor. The November 26 and December 10 settlements each have a target of Rs600 billion, divided equally at Rs150 billion per tenor. The final settlement on December 24 carries an Rs800 billion target, with Rs200 billion planned for each maturity category.
Alongside the Treasury bill programme, the SBP plans to raise Rs1.05 trillion through fixed-rate Pakistan Investment Bonds during the quarter. Three PIB auctions are scheduled for October 7, November 4 and December 16, each carrying a target of Rs350 billion. The calendar does not include floating-rate PIB auctions for this period. The tenor-wise distribution will remain the same across all three offerings, with Rs75 billion allocated to two-year bonds, Rs75 billion to three-year bonds, Rs100 billion to five-year bonds, Rs50 billion to 10-year bonds and Rs50 billion to 15-year bonds. This structure sets out the planned allocation between shorter and longer-term fixed-rate government securities, giving investors several maturity options within each auction.
The PIB calendar also provides details of the securities and their coupon rates. The two-year and 15-year instruments listed in the schedule carry zero coupon rates, while the three-year bonds carry a coupon rate of 12%, the five-year bonds 12.25% and the 10-year bonds 12.50%. The issue dates specified in the calendar are August 5, 2026, for the two-year and 15-year securities, and May 19, 2026, for the three-year, five-year and 10-year instruments. The planned issuance of Rs350 billion in each of the three auctions will bring the total fixed-rate PIB target to Rs1.05 trillion for the quarter.
The October-December auction calendar sets out the government’s planned borrowing through two major categories of domestic securities, with Treasury bills accounting for Rs4.7 trillion and fixed-rate PIBs contributing Rs1.05 trillion. The schedule details the intended timing, size and maturity composition of the offerings, alongside the Treasury bills expected to mature during the period. For banks, institutional investors and other market participants, the published calendar provides information for assessing upcoming government securities supply and planning participation in the auctions. The final amounts raised will depend on the results of individual auctions, while the stated targets provide the framework for the government’s financing programme through the end of December 2026.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.